Stock-Based Compensation

9 Months Ended

Sep. 30, 2012

Stock-Based Compensation

Note 10. Stock-Based Compensation

A summary of stock-based compensation expense related to director and employee stock options, Restricted Stock Units (“RSU”), Performance Stock Units (“PSU”), and Employee Stock Purchase Plan (“ESPP”) for the three and nine months ended September 30, 2012 and October 2, 2011 is as follows (in thousands):

	Three Months Ended				Nine Months Ended
	September 30, 2012		October 2, 2011		September 30, 2012		October 2, 2011
Cost of revenue	$	63	$	63	$	189	$	189
Selling, general and administrative	1,582		2,747		4,581		6,976
Total	$	1,645	$	2,810	$	4,770	$	7,165

For the three and nine months ended September 30, 2012, we granted to employees 20,000 and 606,855 options, respectively, with a weighted-average grant-date fair value of $2.78 and $2.73 per option, respectively, which will vest annually in equal quantities over three years from the date of grant.

Stock compensation expense for the nine months ended September 30, 2012 was reduced by $1.9 million primarily due to forfeitures related to the departure of our former Chief Executive Officer ("CEO").